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Tuesday, August 9, 2022

Gold Falls as U.S. Dollar Rallies

Gold Falls as U.S. Dollar Rallies© Reuters. Gold fell on Tuesday.

Investing.com – Gold prices were driven lower on Tuesday as the U.S. dollar rallied amid Sino-U.S. trade tensions.

Comex for December delivery fell 0.23% to $1,197.10 a troy ounce as of 10:25 AM ET (14:25 GMT).

U.S. President Donald Trump threatened on Friday to impose tariffs on almost all Chinese imports, or about $467 billion in goods.

Meanwhile, China is planning to ask the WTO for permission to impose sanctions on the U.S., according to a WTO meeting agenda. Beijing will formally place the request next week, as an apparent response to remarks from Trump. Chinese officials had previously stated they would retaliate on any trade moves from Washington.

Trade worry helped boost the dollar, as investors feel the U.S. has less to lose in a trade war. Gold prices have fallen more than 12% since April as investors turned to the safe-have appeal of the greenback.

Expectations for a Federal Reserve rate hike in September also helped push the greenback higher. The , which measures the greenback’s strength against a basket of six major currencies, rose 0.05% to 95.17.

Gold usually falls as the dollar rises, as it is denominated in the U.S. currency and is sensitive to moves in the dollar. Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.

Other metals were lower on the Comex, with down 0.78% to $14.070 a troy ounce. Among other precious metals, fell 0.08% to $789.40, while decreased 0.08% to $963.80 an ounce. futures lost 0.49% to $2.615 a pound.

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Source: Investing.com

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